Trade Update: Exports bounce back

The Philippine trade deficit in September narrowed by 14.7% year-on-year to USD 4.35 billion as exports showed stronger growth compared to last month, as well as modest import growth.

Key points

• The country’s total deficit year-to-date decreased by 5.7% to USD 37.18 billion.
• Exports growth quickened to 15.9% year-on-year from 5.5% in the preceding month. Meanwhile, imports rose by 2.1%, a reversal from 0.3% contraction in August.
• Manufactured goods remained the top export commodity and grew by 15.9% year-on-year. Meanwhile, raw materials and intermediate goods, the country’s top import, contracted by 4.9%.

Metrobank’s take

• The BSP’s monetary easing may help capital goods imports and private investments pick up in the near future.
• The narrower trade deficit will be supportive of the country’s GDP growth in Q3.

(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)  

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ECONOMIC UPDATES 

Philippines Trade Update: Growing exports lead to stronger trade balance

A narrower trade deficit may be supportive of economic growth.

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